Oil prices shot up in the initial session of Tuesday in Asia after witnessing a steep fall a day before on Monday. The demand for fuel consumption is going lower following the looming threat and rising cases of COVID-19 virus.
Brent crude oil jumped to $41.02, gaining 0.51 per cent at 4:05 AM GMT. WTI Futures climbed up to $38.73, a gain of 0.44 per cent during the period.
With Hurricane nearing the landfall in the Gulf of Mexico in the US for the record eleventh time, Asian markets saw a resurgence of oil rates. Hurricane Zeta will make its impact on Wednesday. Notably, refiners and rugs are already shut down to minimise harm and negate any casualties.
Meanwhile, the rising cases of corona pandemic in the US and Europe are keeping investors away from oil. In the Midwest and Sunbelt regions, the US is feeling the heat of non-cooperation from traders.
Also, the return of Libya from the embargo into production is hurting the market. The country is producing close to one million bpd. In July, the extraction had gone below a hundred thousand bpd.